North Forest intervention by TEA — was it worth it?

North Forest intervention by TEA — was it worth it?State management of district that's closing totaled more than $1 million

ERICKA MELLON, HOUSTON CHRONICLE

Published 5:30 am, Sunday, August 7, 2011

For the past five years, the Texas Education Agency sent teams of managers into the long-troubled North Forest Independent School District, trying to balance the books and boost student test scores.

The state appointees cost North Forest taxpayers more than $1 million, according to recently released district records. And in the end, the district didn't make enough progress to stop the TEA commissioner from ordering the ultimate state sanction come 2012: closure.

"Is the cost worth it?" asked George McShan, the former state-appointed chairman of the North Forest board. "If it's done right, it's worth the investment."

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Whether the TEA intervention in North Forest was done right is debatable.

Test scores in North Forest have risen since 2006, but three of its nine schools rated by the state failed to meet academic targets this year. The high school fell short for the sixth straight time, with fewer than half the students passing basic math exams.

The district, nearing bankruptcy when the state dispatched a financial conservator four years ago, projects it will have $2.3 million in its savings account this year.

But the most recent outside audit, from last August, found serious problems with the district's internal controls to prevent misspending. Auditors also noted that the district could not afford to repay $13 million it borrowed from its construction fund.

Foyer renovations

Questionable spending persisted even under the state's watch.

The district paid nearly $18,000 to renovate the central office foyer with a hardwood floor, a couch and four matching chairs and a 144-gallon freshwater aquarium, according to newly released records.

"On my part, that was a complete surprise," said Ron Rowell, a senior TEA official who oversaw the state appointees in North Forest.

The makeover took place in October 2009 — under the leadership of the state's superintendent and board — a week or so before TEA Commissioner Robert Scott came from Austin to visit.

TEA spokeswoman Debbie Ratcliffe said the agency doesn't approve every expenditure in advance.

State Rep. Rob Eissler, chairman of the House Public Education Committee, said Texas has room to improve on its "follow-through" with districts tagged as under- performing. He proposed a bill to create principal training programs focused on improving struggling schools, but it never came to a vote.

"TEA is an easy target," said Eissler, a former school trustee in Conroe. "They've been decimated by the (state) budget problems. I'm not making excuses. I'm just trying to paint a picture."

Over the past few years, the TEA placed monitors, more powerful conservators or other appointees in 51 districts and charter schools, including 17 in the Houston area. The appointees generally are retired educators.

Spring ISD and Houston ISD had conservators because of problems in special education. HISD also had a team for its schools rated "unacceptable." The others in the area that were sanctioned were charter schools.

Trustees were ousted

The TEA has intervened in North Forest since at least 1988 when it dispatched a monitor to help with finances and a meddling school board.

The agency's recent string of sanctions in North Forest began in late 2006 when it assigned two outside educators to work with the "unacceptable" campuses. A conservator, with the power to overrule the board, began overseeing finances the next year. An academic conservator joined him in 2008.

"Sometimes there was difficulty getting information," recalled Henry Boening, the financial conservator. "I was hoping they would be able to get things together. There are a lot of good people there."

Commissioner Scott then took the rare step three years ago of ousting the locally elected trustees and naming his own board of managers. Adrain Johnson, a TEA commissioner who used to lead La Marque ISD, was the state-appointed superintendent.

North Forest, by law, had to pay for the state appointees, whose fees ranged from $60 to $100 an hour. The cost added up, as those from outside the city also were reimbursed for travel.

'Part of their punishment'

The appointed board chairman, for example, lived in Harlingen, so his seven hours of travel time cost $700, not including the airfare. TEA officials said they brought in McShan, despite the distance, because of his strong background. He's a longtime board member in Harlingen ISD and had led the state and national school board associations.

The other two appointed board members, who lived in the district, did not get paid.

Over five years, North Forest spent about $1.2 million for seven appointees, district records show. About $527,000 was for the state's superintendent, who earned more than double that of the interim chief he replaced.

"The district is always going to pay a superintendent, even if we hadn't appointed somebody," said the TEA's Ratcliffe. "Frankly, one reason we make them pay for the monitors and conservators and board of mangers is it's part of their punishment."

Johnson, the appointed superintendent, made $193,723 plus $15,000 for travel and expenses, records show.

Before the interim, superintendent James Simpson made more than $168,000, including travel.

McShan said North Forest was improving under the state's watch. The district instituted full-day and dual- language preschool to help students get a good academic start, closed three campuses to deal with declining enrollment and brought in the successful YES Prep charter school.

"The finances were always the Achilles' heel," he said.

North Forest voters in 2008 rejected a tax hike, making it harder for the property-poor district to stay afloat.

McShan said he thinks the board of managers needed more time. State law allows only a two-year stay.

When the locally elected board members regained control in November 2010, they removed the state's superintendent within a few months.

120 jobs cut for next year

Edna Forte, the new superintendent promoted from within the district, acknowledges the high school needs to improve. She has hired a new principal - the third in three years; created a high-level position to oversee academics districtwide; and plans better training for teachers.

She also won the board's approval to eliminate 120 jobs next year, saving an estimated $5 million. Forte says the district shouldn't be held accountable for the poor academic and financial ratings it received when the TEA was involved in North Forest.

"The agency may say, 'We've given them enough time,'" she said. "But I would say, equate the time to the governance. There were limitations in decision-making."